2023-03-20 11:12:11 ET
Silicon Motion ( NASDAQ: SIMO ) fell 3% amid a report China's review of MaxLinear's ( NASDAQ: MXL ) planned purchase is not in the final stages.
The transaction is not close to gaining regulator approval from Chinese antitrust authorities, according to a Dealreporter item, which cited sources familiar, refuting some speculation from last week.
Silicon Motion jumped ( SIMO ) 8.3% on Thursday after after the CEO of Silicon Motion ( SIMO ) rival Phison Electronics said on the company's earnings conference call on Wednesday that there's a rumor that the planned sale to MaxLinear ( MXL ) is nearing approval by China's antitrust regulator.
China's antitrust regulator mandated an external economist to evaluate the transaction, according to the Dealreporter item on Monday. The move by China's State Administration for Market Regulation indicates that the deal will likely hit the 180-day full review period in late March or early April.
In January MaxLinear ( MXL ) said its planned purchase of Silicon Motion Technology ( SIMO ) was on track for a mid-year close.
The companies first announced the $3.8 billion deal in May.
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Silicon Motion dips amid report that China review of MaxLinear not in final stages